What’s Going On?
China’s crypto mining giant Ebang Communication plans to go public on the Hong Kong Stock Exchange (HKEX) with an IPO rumoured to be worth $1 billion.
Why Does It Matter?
If Ebang is indeed looking to raise a total of a billion dollars, that could make it the largest IPO in the cryptocurrency industry, reported CoinDesk. Last month, Ebang rival Canaan Creative submitted its own IPO application to the HKEX. Canaan Creative is also looking to raise $1 billion, it was reported.
Ebang’s filing does not give a precise valuation for the firm, reported Cointelegraph. The filing did include a financial statement which states that Ebang earned $141 million in revenue in 2017, which would represent an almost eighteen-fold increase from the previous year.
Is Mining Crypto Worth Billions?
Bitcoin mining equipment companies make computers with special chips, explained Reuters. These specialised units mine crypto coins more efficiently than traditional PC chips made by companies such as Intel. Reuters also reported on Ebang’s delisting from China’s National Equities Exchange and Quotations this year after announcing in January that it would seek a Hong Kong listing.
Earlier this month we reported that Argo Blockchain announced plans to list on the London Stock Exchange. The company was set up last year to provide what it calls mining-as-a-service.
In related news, Ripple CEO Brad Garlinghouse said four miners in China control over 50 percent of Bitcoin. China’s control of the cryptocurrency means Bitcoin will not disrupt banks, claimed Garlinghouse at the time, but he said it will play an important role in the way the world’s financial system works.